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Notable! Live Rent Free in Multiple Countries

Discussion in 'Real Estate Investing' started by GlobalWealth, Apr 29, 2015.

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  1. MTF
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    MTF Never give up Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    How are you going to manage the keyless entry for guests? A different code for each guest with an expiration date?
     
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  2. GlobalWealth
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    GlobalWealth Platinum Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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    I have 2 backup people close by for emergencies.

    I will say the last 2 times I stayed at airbnb they were both superhosts and both were automated with no one at checkout. Great experience.

    Sent from my SM-G900FD using Tapatalk
     
  3. GlobalWealth
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    GlobalWealth Platinum Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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    Yes

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  4. Valor
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    Valor Silver Contributor FASTLANE INSIDER Speedway Pass

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    @GlobalWealth I recently had the idea of doing the same thing you talk about in the OP within the U.S. by renting several apartments across the country (negotiating permission with the landlords of course), and then renting them out on Airbnb.

    I ran the numbers and don't see any reason why it wouldn't work out to where you could have several apartments across the country and not pay a penny for any of them (and more likely make 20-50% annual ROI's with them). After running the numbers, I fully plan on doing this in the near future within the U.S.

    I see that you've done this (rented out apartments on Airbnb that you yourself are renting from a landlord), but it seems it's been in other countries so far. Do you have any experience doing so strictly in the U.S.?

    Do you have any tips that you would give for negotiating permission from landlords to sublease the apartments? Or any advice for using Airbnb - increasing nightly rates, fill rates, etc. using their platform?

    My plan is offer to pay a large (50-100%) of the full 12 month lease upfront as necessary to help gain permission to list the apartments on Airbnb. From there, achieving a nightly rate of 9-10% of the monthly rent/expenses and a 50% fill rate on Airbnb seems doable, leaving rough profit before cleaning services, etc. at about 50% of the monthly rent I'd be paying.

    I see other people have mentioned related stuff in this thread too, so I hope it's not repetitive. I guess my question is, if you were to go this route, given your experience and knowledge, what general advice would you give, i.e. how would you approach this starting out?

    Thanks so much for the thread btw - no clue how I've missed it before.
     
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  5. GlobalWealth
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    GlobalWealth Platinum Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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    The answer is just work. You will need to review the rental agreement and ensure it does not prohibit sublets. You will also need to confirm any hoa does not prohibit short term leases. Just talk to the landlords. Ask them. Many will say no. Talk to more.

    It's just a math problem. It doesn't matter what country the property is located in.

    Not really. Just play around with the platform until you get the settings you like. You will likely need to start with a low nightly rate to get some guests and reviews. Once you have a few reviews just raise your prices.

    Just take your time. Find the right property in the right location. For short term rentals, locations is even more important. You can have an amazing property but it may be just slightly out of walking distance to the restaurants, bars, etc. and no one will rent it no matter what the price. Travelers want convenience. You will not get rich quick doing this. Take your time.
     
  6. hers1357
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    hers1357 New Contributor

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    Interesting post! I do this in the UK.. I have 2 apartments I sub-let and rent on airbnb and some other sites. It is a lot of work, but the money can be good. I've been doing it for almost a year now and renting a couple of rooms out in my own house. I'm looking to get more here asap and also automate it with key safes.
     
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  7. Bach89
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    Bach89 Contributor Read Millionaire Fastlane

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    I'm not sure if this has been mentioned yet (I did a search for "AirDNA" and nothing came up) but:

    AirDNA.

    Essentially it's a place where you can buy data on certain cities/parts of cities to tell you their activity, frequency of booking, etc.

    It saved me a ton of money on potentially buying an AirBNB property in a low-activity area of Toronto, and I'm confident that if you don't use it already, it will save (or make) you a ton of money as well. The website is airdna(dot)co - and no, I have no affiliation.

    First post though, so hey everybody!
     
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  8. tristano
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    tristano New Contributor Read Millionaire Fastlane

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    Have few friends who bought apartment in Canary islands. They bought in 2014/2015 when prices dropped due to economic crise in Spain and prices where way lower than right now. Anyway, you can find some opportunities even these days (there are always good opportunities).
     
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  9. GlobalWealth
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    GlobalWealth Platinum Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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    Just a quick update.

    I fired my old PM that handled some of my properties. She started to fall apart in the past couple of months so I replaced her.

    The new PM is doing great and profits are actually increasing month vs month.

    My ROI runs around 20% average.

    I am looking to add one more, maybe two properties this year.
     
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  10. TedM
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    TedM Gold Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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    thanks for updating
     
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  11. aardvarky
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    aardvarky Contributor

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    Very, very interesting post - thank you, GlobalWealth - especially since I’ve been super curious about doing this but unsure of how it could actually be implemented and if I'm honest, a little scared to actually pull the trigger.
    You've inspired me to look further into it and set myself a deadline :)

    I think we'll be looking in some of the same cities as well - I also love Budapest and was there last month for awhile and couldn't believe how reasonable property prices still are, especially considering the rents have been steadily rising. Same with Spain, where I am currently - definitely has places I’d return to again and again and the housing is relatively affordable still, even in the capital.

    The only thing that's scaring me are the AirBnb regulations that keep getting rolled out in Spain - how are you finagling
    getting AirBnb rental licenses for each of the properties?

    But then again, I think for me, I'd prefer to stay like 2 to 3 months a year in say, Spain, and then find a longer-term tenant for the rest of the time.

    Could I also ask you how much liquidity you like to have with each of the deals? Like, for each property you buy, how much do you prefer to have in the bank to cover the costs, unforeseen expenses, mortgage payments in case of worst case scenarios?

    Thanks again for sharing your experiences!
     
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  12. GlobalWealth
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    GlobalWealth Platinum Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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    I wouldn't touch a location that required a rental license.

    For liquidity, I do a lot of homework on potential income so I don't worry too much about excess cash on hand.

    The properties are all positive cash flow and earning 15%+ yields.

    For me I don't use the income from them to live on so the cash generally stays in the accounts.

    Usually about once a month or every other month I will pull some excess cash and invest it in p2p or crypto.


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  13. AdamMaxum
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    AdamMaxum a worthy successor indeed Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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  14. simonstanley
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    @GlobalWealth LOVE this idea! Thank you so much for this post.

    I'm from the UK, and have been travelling all over Europe also, learned Spanish, made incredible friends overseas, living the laptop lifestyle! However I've been the one renting AirBnbs in different cities from different landlords, and I've seen first hand how crazy the prices can command in different tourist cities.

    Even though I'm a single dude and love travelling, I have to admit it's difficult to remain consistent on my fastlane business (an information publishing business, creating course content, YouTube videos) which has generated my capital thus far, while always on the move, without fundamentals in place.

    In travelling so much and experiencing the world, I've still really felt a lack of "structure". Sometimes pieces of paper going missing in transit, even equipment going missing which packing my stuff last minute before a flight, which is not great foundations for building a solid business. So I guess you could amend this strategy how you see fit.

    For example, even though I can't stand the climate most of the year, buy a small apartment in my home country in UK in the least expensive way possible where my business is registered, where I speak the language fluently and family are based. Not for the purpose of renting out, but as the ultra "fail safe" with minimum mortgage possible. Use it as a base with minimal overheads to generate maximum cash flow and start investing overseas, even if it's vacant most of the year.

    For example, places like Nottinghamshire, Manchester, Leeds, Southampton etc you can buy an apartment for £70k, and still be able to commute to visit family + friends.

    Have you considered doing something like this? Or are you perpetually on the move? I've also totally had enough of 6 months blustery winters in the UK, but there's something nice about having something in my home country for the added security and sturdy foundations in a stable market.
     
    Last edited: Oct 12, 2017 at 6:42 AM
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  15. GlobalWealth
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    GlobalWealth Platinum Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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    I have a home base in Europe where I spend a good amount of time.

    I do not rent this one out, for now. However, I am about to rent a new apartment to live in and make my current home a short term rental.

    In this market it is much cheaper to rent than to buy. For example, I looked at a new apartment yesterday that I may move to. It's 100m2, 2br/2ba penthouse with a terrace and floor to ceiling windows. It's a brand new renovation. They want €550/m plus utilities for rent, or to buy it would cost €250,000. I'd be crazy to buy at this price.

    I have added 2 units this year and about to add 1-2 more (including my current home mentioned above) before the end of the year.



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  16. simonstanley
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    simonstanley Contributor

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    Awesome! Another great idea. In buying a home for personal use, I guess there's no reason why you can't turn that into rental later down the line if the math / circumstances / the way you feel about it changes.

    I guess my main concern is being "locked down" to one spot if buying someplace to create structure and sturdy foundations, with the intention of being away from it most of the year. Only way to do it I guess is just do it, and the path will become clear.
     
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  17. GlobalWealth
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    GlobalWealth Platinum Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass

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    This is how I started. Step by step.

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